Robinhood Markets Inc. is in talks to pay a fine for resolving investigations into its options trading practices and stock application interruptions suffered in March 2020, according to a securities registration.
The Securities and Exchange Commission, state regulators and the financial industry regulator, Wall Street’s self-regulatory component, examine Robinhood’s behavior in these matters, including how Robinhood “displays cash and purchasing power to customers and its approval processes.” of options trading ”. said the company on filing.
Separately, the New York Financial Regulatory Authority and the Attorney General, among other regulators, are reviewing cases of unauthorized actors taking over Robinhood users’ accounts.
Two subsidiaries – Robinhood Financial and Robinhood Securities – are currently negotiating a settlement with Finra on interruptions and options trading practices, which could include fees for violating Finra rules, a fine, a refund to customers and the hiring of a compliance consultant.
Polls could lead to losses of at least $ 26.6 million, according to the document.